Rebecca Urban wrote this story in The Australian on Friday June 12.
Heart of the matter
CSL's decision to abort its Talecris Biotherapeutics acquisition amid competition concerns has poured doubts on a multi-million-dollar merger involving another Australian-made company, Heartware International.
Analyst Duane Nash of Wedbush keeps a close eye on Thoratec Corporation, a medical device giant that has lobbed a $434 million offer to buy Heartware. He has described the Federal Trade Commission's challenge of CSL's Talecris deal as "alarming".
"While we believe the Talecris merger to present more egregious anti-trust issues ... it is worth noting that a (Thoratec-Heartware) merger would result in an even greater degree of market concentration," Nash points out in a note to clients. "In any event, the Talecris situation does corroborate earlier fears that the Obama administration ... will take a very aggressive approach to anti-trust enforcement."
Thoratec is considered a leader in the treatment of cardiac diseases -- the same market where the recently collapsed heart pump maker Ventracor was operating. Thoratec announced its bid for the Australian Securities Exchange-listed Heartware, which is developing a similar but less advanced device to Ventracor's, back in February and is awaiting approval from the FTC.
Interestingly, Nash also pointed to the uncertainty surrounding Ventracor's viability as a potential risk to the merger. "We believe that a viable Ventracor can increase palatability to the FTC of the pending Heartware merger (by maintaining the presence of a separate ... competitor that is ahead ... in the developmental pathway)," he says.
Ventracor creditors have approved the sale of assets to a company set up by US-based Orqis Medical. The $10 million sale was due to be completed today.
http://www.theaustralian.news.com.au/business/story/0,28124,25622689-5016575,00.html
About this news blog
The purpose of this blog is to allow the Ventracor Shareholder's Group to assist in the dissemination and sharing of information, and to allow legitimate debate on the items posted on the blog. No claim is made as to the accuracy or authenticity of the content.
Saturday, June 13, 2009
Disclaimer
All are invited to post constructive comments on all blog topics.
The comments on the blog may be monitored, and the Ventracor Shareholder's Group reserves the right not to post or remove or moderate any comments which in its opinionare unlawful, threatening, defamatory, offensive, or obscene.
This "blog" has links to information on other web sites. The opinions expressed in these linked articles are those of the relevant authors.
This "blog" allows anyone from the public to post comments. Any views expressed in these comments are those of the relevant author.
The Ventracor Shareholders Group does not endorse the views or opinions expressed in the linked articles or comments.
The Ventracor Shareholder's Group does not accept any responsibility for any injury, loss or damage incurred by use of or reliance on the information.Anyone who wishes to have a comment or link removed from the website should email contact@saveventracor.com immediately.
The comments on the blog may be monitored, and the Ventracor Shareholder's Group reserves the right not to post or remove or moderate any comments which in its opinionare unlawful, threatening, defamatory, offensive, or obscene.
This "blog" has links to information on other web sites. The opinions expressed in these linked articles are those of the relevant authors.
This "blog" allows anyone from the public to post comments. Any views expressed in these comments are those of the relevant author.
The Ventracor Shareholders Group does not endorse the views or opinions expressed in the linked articles or comments.
The Ventracor Shareholder's Group does not accept any responsibility for any injury, loss or damage incurred by use of or reliance on the information.Anyone who wishes to have a comment or link removed from the website should email contact@saveventracor.com immediately.